A day ahead of the Bank of Canada policy rate announcement, Statistics Canada reports inflation ticked upwards in August to 1.9 per cent year-over-year.
That's up two-tenths of a percentage point from July and is slightly below the Bank of Canada target of two to three per cent.
Gasoline prices dropped 12.7 per cent from a year ago last month and 2.7 per cent from July, over concerns about slowing economic growth.
Without gasoline, the inflation rate was 2.4 per cent, down one-tenth of a percentage point from the last three months when it was 2.5 per cent.
At the grocery store, Canadians paid more for meat, 7.2 per cent more than a year ago, after rising 4.7 per cent in July. Those buying fresh or frozen beef paid 12.7 per cent more from August 2024, and the price of processed meat rose 5.3 per cent.
The cost of fresh fruit fell 1.1 per cent from 12 months ago, after climbing 3.9 per cent in July. The price of grapes, berries, and other fresh fruit helped moderate grocery costs.
If you were travelling in August, the cost of overall travel services fell 3.8 per cent. A drop in demand for destinations in the U.S. fueled a 9.3 per cent drop in the cost of travel tours. The price of accommodations rose 2.9 per cent, based on a 16.1 per cent jump in the price of a hotel room in Nova Scotia, and a 30.9 per cent increase in Newfoundland and Labrador. Air transportation fell by 7.6 per cent.
If you bought into a new cell phone package in August, you paid 1.2 per cent more year-over-year because of fewer back-to-school sales.
Clothing and footwear costs rose 1.7 per cent from a year ago.
Statistics Canada is expected to release the next Consumer Price Index report on October 21.
